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Commercial peace talks are currently taking place between Sweden's commissioner for Swedish committees, Cecilia Malmström, and US Trade Representative Robert Lighthizer, a lawyer and advisor in President Reagan's government.
During their meetings, the threat hovered around a transatlantic escalating conflict. The White House has shown impatience and accused the EU of delaying the trial. At the same time, the Trump government is conducting an investigation into the new customs tariffs against the European car industry. The risk is that the equipment continues.
The German newspaper Frankfurter Allgemeine called Cecilia Malmström to the most important politician of the European Commission. But his mission – to blush the president and avoid a trade war – is also the most difficult.
Why did the United States enter into a trade dispute with the EU?
The origin is essentially linked to Donald Trump's vision of international trade. He sees in the current account, the difference between imports and exports, a measure of the maturity of the United States and a sign of infertility of foreign leaders.
– In the White House, the trade deficit with the EU is perceived as evidence that Europeans have used the United States. And for the president, it's mostly about the auto industry, "said Peter Chase, a former US diplomat who is currently active in The German Marshall Fund.
It is true that EU trade with the United States is in surplus. What is particularly important is when you look at cars. Last year, European automakers exported cars for a total amount of 38 billion euros to the United States. Exports in the opposite direction were lower – 7 billion euros. A great injustice, according to Trump.
– US auto taxes are 2.5%, while the EU is 10%. But this is not the whole truth. The United States imposes 25% tariffs on light trucks and light trucks. He rarely mentions the president, says Peter Chase.
Where are we now in the conflict?
Last spring, Cecilia Malmström lost the battle for a permanent European exemption from the steel and aluminum tariffs imposed by the United States.
Shortly after, the EU put in place countermeasures. This led to a meeting between European Commission President Jean-Claude Juncker and President Trump in July, which resulted in a kind of ceasefire. Since then, traffic has continued on the other side of the Atlantic. Cecilia Malmström proposed tariffs on the vehicles removed in exchange for the fall of the United States. He denied the United States.
She said in a written comment to DN that this week's meeting would focus on removing technical barriers to trade.
"We have done a lot of concrete work in terms of regulatory cooperation, that is to say if we can mutually approve the testing procedures and certification of the pharmaceutical industry, for example.
Can the EU meet Trump's demands and end peace with the United States?
Outside the president's advisory circle, few economists generally believe that the US can reduce its deficit by threatening or negotiating with its trading partners. The overall balance is determined by macro-economic factors. Successful EU bile exports are, in turn, due to German engineering rather than to the customs tables. What the United States would do by stopping imports is also unclear.
When Trump and Juncker met this summer, a new trade deal was announced. But the way he is tall.
"We will discuss how we can proceed with a limited trade agreement on industrial products." Cecilia Malmström: "We have not arrived yet.
Peter Chase of the German Marshall Fund believes that the White House has misjudged its position negotiations with the EU.
"The United States is pushing very hard and does not appear very diplomatically, but the EU is much bigger than Canada and Mexico." The application to the EU of the same tactics that in the negotiations on the Nafta agreement does not succeed.
Instead, the hope is that Robert Lighthizer and Cecilia Malmström will reach a negotiating result that Trump can call victories.
– Some quick wins can attract the attention of the trade balance with the EU and instead target China. Here, the United States and the EU should work together, "said Peter Chase.
Read more: Cecilia Malmström: We will explain to Trump that the EU is not an enemy
Trade disputes between the United States and the European Union
March 1, 2018. President Trump Twittrar: "The trade war is a good deal and it is easy to win." A few days later, he made the decision to introduce new tariffs on steel (25%) and aluminum (10%), in reference to US national security. The EU enjoys a temporary waiver.
May 23, 2018. The White House opens a formal investigation into customs duties on vehicles and parts of vehicles, particularly from the EU.
May 31, 2018. The United States introduces tariffs on steel and aluminum in the EU.
June 22, 2018. The EU faces countermeasures in the form of duties on a range of products, including motorcycles and bourbon, from the United States.
July 25, 2018. President Trump and European Commission President Jean-Claude Juncker meet in Washington and agree to open negotiations on trade agreements.
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